diff --git a/packages/producer/src/services/render/stages/encodeStage-encodeTimeoutConfig.test.ts b/packages/producer/src/services/render/stages/encodeStage-encodeTimeoutConfig.test.ts
new file mode 100644
index 000000000..0f672b022
--- /dev/null
+++ b/packages/producer/src/services/render/stages/encodeStage-encodeTimeoutConfig.test.ts
@@ -0,0 +1,192 @@
+import { describe, expect, it, mock } from "bun:test";
+import { mkdtempSync, writeFileSync } from "node:fs";
+import { tmpdir } from "node:os";
+import { join } from "node:path";
+
+// ── Mocks for runEncodeStage tests ───────────────────────────────────────────
+// Capture the trailing `config` argument passed to encodeFramesFromDir so we
+// can assert the encode stage threads `producerConfig ?? resolveConfig()`
+// through (regression for #1348 — the call site dropped the 6th argument, so
+// ffmpegEncodeTimeout always fell back to the hardcoded default and
+// FFMPEG_ENCODE_TIMEOUT_MS was silently ignored).
+const encodeCalls: { config: unknown }[] = [];
+const runFfmpegCalls: { timeout: number | undefined }[] = [];
+let resolveConfigCalls = 0;
+
+const RESOLVED_ENCODE_TIMEOUT = 67_890;
+
+const successResult = {
+  success: true,
+  outputPath: "/tmp/hf-encode-test/out.mp4",
+  durationMs: 1,
+  framesEncoded: 1,
+  fileSize: 1,
+};
+
+mock.module("@hyperframes/engine", () => ({
+  encodeFramesFromDir: async (
+    _framesDir: string,
+    _framePattern: string,
+    _outputPath: string,
+    _options: unknown,
+    _signal: AbortSignal | undefined,
+    config: unknown,
+  ) => {
+    encodeCalls.push({ config });
+    return successResult;
+  },
+  encodeFramesChunkedConcat: async () => successResult,
+  runFfmpeg: async (_args: string[], opts: { timeout?: number }) => {
+    runFfmpegCalls.push({ timeout: opts.timeout });
+    return { success: true, exitCode: 0, stderr: "", stdout: "" };
+  },
+  formatFfmpegError: (exitCode: number, stderr: string) => `exit ${exitCode}: ${stderr}`,
+  getEncoderPreset: () => ({
+    preset: "veryfast",
+    quality: 23,
+    codec: "h264",
+    pixelFormat: "yuv420p",
+  }),
+  resolveConfig: () => {
+    resolveConfigCalls += 1;
+    return { ffmpegEncodeTimeout: RESOLVED_ENCODE_TIMEOUT };
+  },
+}));
+
+// Minimal EngineConfig for the producerConfig-present case. Same field set as
+// probeStage.test.ts — the full interface so the literal satisfies EngineConfig.
+function makeProducerConfig(ffmpegEncodeTimeout: number) {
+  return {
+    forceScreenshot: false,
+    lowMemoryMode: false,
+    fps: 30,
+    quality: "standard" as const,
+    format: "jpeg" as const,
+    jpegQuality: 80,
+    concurrency: "auto" as const,
+    coresPerWorker: 2.5,
+    minParallelFrames: 120,
+    largeRenderThreshold: 1000,
+    disableGpu: false,
+    browserGpuMode: "software" as const,
+    enableBrowserPool: false,
+    browserTimeout: 120_000,
+    protocolTimeout: 300_000,
+    enableChunkedEncode: false,
+    chunkSizeFrames: 360,
+    enableStreamingEncode: false,
+    streamingEncodeMaxDurationSeconds: 240,
+    ffmpegEncodeTimeout,
+    ffmpegProcessTimeout: 300_000,
+    ffmpegStreamingTimeout: 600_000,
+    hdr: false,
+    hdrAutoDetect: true,
+    audioGain: 1,
+    frameDataUriCacheLimit: 256,
+    frameDataUriCacheBytesLimitMb: 1500,
+    playerReadyTimeout: 45_000,
+    renderReadyTimeout: 15_000,
+    verifyRuntime: true,
+    debug: false,
+  };
+}
+
+function makeEncodeInput(overrides: {
+  producerConfig?: ReturnType<typeof makeProducerConfig>;
+  isGif?: boolean;
+  framesDir?: string;
+}) {
+  const workDir = mkdtempSync(join(tmpdir(), "hf-encode-stage-test-"));
+  return {
+    job: {
+      id: "encode-test",
+      config: {
+        fps: { num: 30, den: 1 },
+        quality: "standard" as const,
+        producerConfig: overrides.producerConfig,
+      },
+      status: "rendering" as const,
+      progress: 0,
+      currentStage: "Encode",
+      createdAt: new Date(0),
+    },
+    log: {
+      error: () => {},
+      warn: () => {},
+      info: () => {},
+      debug: () => {},
+    },
+    outputPath: join(workDir, overrides.isGif ? "out.gif" : "out.mp4"),
+    framesDir: overrides.framesDir ?? workDir,
+    videoOnlyPath: join(workDir, "video-only.mp4"),
+    width: 640,
+    height: 360,
+    needsAlpha: false,
+    hasAudio: false,
+    isPngSequence: false,
+    isGif: overrides.isGif ?? false,
+    preset: {
+      preset: "veryfast",
+      quality: 23,
+      codec: "h264" as const,
+      pixelFormat: "yuv420p",
+    },
+    effectiveQuality: 23,
+    effectiveBitrate: undefined,
+    enableChunkedEncode: false,
+    chunkedEncodeSize: 360,
+    abortSignal: undefined,
+    assertNotAborted: () => {},
+  };
+}
+
+function resetCaptures() {
+  encodeCalls.length = 0;
+  runFfmpegCalls.length = 0;
+  resolveConfigCalls = 0;
+}
+
+describe("runEncodeStage — encode timeout config threading (#1348)", () => {
+  it("passes producerConfig as the trailing config argument when present", async () => {
+    resetCaptures();
+    const { runEncodeStage } = await import("./encodeStage.js");
+
+    const producerConfig = makeProducerConfig(12_345);
+    await runEncodeStage(makeEncodeInput({ producerConfig }));
+
+    expect(encodeCalls.length).toBe(1);
+    const config = encodeCalls[0].config as { ffmpegEncodeTimeout: number };
+    expect(config.ffmpegEncodeTimeout).toBe(12_345);
+    // The pre-resolved distributed-render config wins; env is not re-read.
+    expect(resolveConfigCalls).toBe(0);
+  });
+
+  it("falls back to resolveConfig() when producerConfig is absent (in-process renders)", async () => {
+    resetCaptures();
+    const { runEncodeStage } = await import("./encodeStage.js");
+
+    await runEncodeStage(makeEncodeInput({}));
+
+    expect(encodeCalls.length).toBe(1);
+    expect(resolveConfigCalls).toBe(1);
+    const config = encodeCalls[0].config as { ffmpegEncodeTimeout: number };
+    expect(config.ffmpegEncodeTimeout).toBe(RESOLVED_ENCODE_TIMEOUT);
+  });
+
+  it("threads the resolved timeout into the GIF two-pass encode", async () => {
+    resetCaptures();
+    const { runEncodeStage } = await import("./encodeStage.js");
+
+    // encodeGifFromDir reads the frames dir for real, so seed one frame.
+    const framesDir = mkdtempSync(join(tmpdir(), "hf-encode-stage-gif-frames-"));
+    writeFileSync(join(framesDir, "frame_000001.jpg"), "");
+
+    await runEncodeStage(makeEncodeInput({ isGif: true, framesDir }));
+
+    // Two ffmpeg passes (palettegen + paletteuse), both with the env-aware timeout.
+    expect(runFfmpegCalls.length).toBe(2);
+    expect(resolveConfigCalls).toBe(1);
+    expect(runFfmpegCalls[0].timeout).toBe(RESOLVED_ENCODE_TIMEOUT);
+    expect(runFfmpegCalls[1].timeout).toBe(RESOLVED_ENCODE_TIMEOUT);
+  });
+});
diff --git a/packages/producer/src/services/render/stages/encodeStage.ts b/packages/producer/src/services/render/stages/encodeStage.ts
index c4ef22b7f..eedd99d99 100644
--- a/packages/producer/src/services/render/stages/encodeStage.ts
+++ b/packages/producer/src/services/render/stages/encodeStage.ts
@@ -31,11 +31,11 @@
 import { copyFileSync, existsSync, mkdirSync, readdirSync, statSync } from "node:fs";
 import { dirname, join } from "node:path";
 import {
-  DEFAULT_CONFIG,
   encodeFramesChunkedConcat,
   encodeFramesFromDir,
   formatFfmpegError,
   getEncoderPreset,
+  resolveConfig,
   runFfmpeg,
   type EncodeResult,
 } from "@hyperframes/engine";
@@ -254,7 +254,7 @@ export async function runEncodeStage(input: EncodeStageInput): Promise<EncodeSta
       loop,
       palettePath: join(dirname(videoOnlyPath), "gif-palette.png"),
       signal: abortSignal,
-      timeout: job.config.producerConfig?.ffmpegEncodeTimeout ?? DEFAULT_CONFIG.ffmpegEncodeTimeout,
+      timeout: (job.config.producerConfig ?? resolveConfig()).ffmpegEncodeTimeout,
     });
     assertNotAborted();
     if (!encodeResult.success) {
@@ -294,7 +294,14 @@ export async function runEncodeStage(input: EncodeStageInput): Promise<EncodeSta
         chunkedEncodeSize,
         abortSignal,
       )
-    : await encodeFramesFromDir(framesDir, framePattern, videoOnlyPath, encoderOpts, abortSignal);
+    : await encodeFramesFromDir(
+        framesDir,
+        framePattern,
+        videoOnlyPath,
+        encoderOpts,
+        abortSignal,
+        job.config.producerConfig ?? resolveConfig(),
+      );
   assertNotAborted();
 
   if (!encodeResult.success) {